Service Management - Learngroup · OPM3“Org. Project Management Maturity Model” and CMMI“Capability Maturity Model Integrated, are Process improvement models. • Management

AssuitAssuit UniversityUniversity

Faculty of Computers and InformationFaculty of Computers and Information

Academic Year 2010 / 2011

Elective Course – Year 4

Service Management Service Management

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Designing the Service EnterpriseDesigning the Service Enterprise

üService Quality

üProcess Improvement

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1.1. Service QualityService QualityLearning objectives

• What is Quality? & What is Grade?

• The five dimensions of Service Quality.

• The Service Quality Gap Model to diagnose Quality Problems.

• How Poka-Yoke methods are applied to quality design in services.

• “House of Quality” as part of a quality function deployment.

• Construct a statistical process control chart.

• The unconditional service guarantees, and its managerial benefits.

• The concept of a service recovery.

• What is the Walk-Through Audit (WtA).

• What is service recovery? And why it’s important

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What is Quality?

• International Organization for Standardization (ISO) defines quality as– The totality of characteristics of an entity that bear on its ability to

satisfy stated or implied needs. (ISO 8024:1994)

– The degree to which a set of inherent characteristics fulfils requirements. (ISO9000:2000)

• Others define quality base on conformance to requirementsand fitness for use.– Conformance to requirements means The processes and

products meet written specifications.

– Fitness for use means a product can be used as it was intended.

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What is Grade?•“Grade, is a category assigned to products or

services having the same functional use butbutdifferent technical characteristics.”–e.g., a software product can be of;

•High quality (no obvious defects, readable manual) and

•Low grade (a limited number of features),

or of

•Low quality (many defects, poorly organized user documentation) and

•High grade (numerous features).

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Quality Management DevelopmentQuality Management Development

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Quality Management ApproachesQuality Gurus Quality Gurus

Ø Deming –“Dr. W. Edwards Deming”

ü Deming’s Cycle for Improvement:

Plan –Do –Check –Act

PLAN for changes to bring about important

DO changes on a small scale first to trial them

CHECK to see if changes are working and to investigate selected processes

ACT to get the greatest benefit from changes

n Taguchi –“Genichi Taguchi”ü He designed methods for high-quality

products, which focused on eliminating defects by substituting scientific inquiry for trial-and-error methods

ü Key concepts of Taguchi methods:Ø Quality should be designed into the

product and not inspected into it.Ø Quality is best achieved by minimizing

deviation from the target value.Ø Applied the concept of robustness to

process (advocated “robust design” )تصمیم قوي للجوده و تأكید علي تحقیقھا )

• Ishikawa – “Kaoru Ishikawa”ü He developed the concept of Quality Circles and pioneered the use of cause-

and-effect diagrams (Fish bone diagram)

ü Quality Circles are groups of non-supervisors and work leaders in a single company department who volunteer to conduct group studies on how to improve the effectiveness of work in their department.

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Modern Quality Management • Customer satisfaction

Understanding, evaluating, defining, and managing expectations so that customer expectations are met. (a combination of conformance to requirements and fitness for use)

• Prevention over inspectionThe cost of avoiding mistakes is much less than the cost of correcting them (quality is planned, designed, and built-in NOT inspected-in)

• Continuous improvement. Plan-Do-Check-Act cycle, is the basis for quality improvementTQM and Six Sigma, improve the quality of PM as well as project’s outcome –Product.

OPM3 “Org. Project Management Maturity Model” and CMMI “Capability Maturity Model Integrated, are Process improvement models.

• Management responsibility Success requires participation of all team members, but it is the responsibility of management to provide resources needed.

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Defining Service Quality

Service Quality can be defined as;

• The assessment of quality is made during the service delivery process.

• Each customer contact is referred to as a moment of truth; an opportunity to satisfy or dissatisfy the customer.

• Customer satisfaction can be defined by comparing;

Service Received Vs. Service Desired Expectations– Expectations are made based on;

• Word of mouth

• Personal needs

• Past experience

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Defining Service Quality

Dimensions of Service Quality

– Reliability

– Responsiveness

– Assurance

– Tangibles

Perceived Service Quality1. Expectation Exceeded

ES<PS (Quality surprise)2. Expectation Met

ES = PS (Satisfactory Quality)3. Expectation not Met

ES > PS (Unacceptable Quality)

☺

LOKOK

Expected Service

Perceived Service

Wordof mouth

Personalneeds

PastExperience

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Dimensions of Service QualityDimensions of Service Quality

• Reliability: Perform promised service dependably and accurately. Example: receive mail at same time each day.

• Responsiveness: Willingness to help customers promptly. Example: avoid keeping customers waiting for no apparent reason.

• Assurance: Ability to convey trust and confidence. Example: being polite and showing respect for customer.

• Empathy: Ability to be approachable.Example: being a good listener.

• Tangibles: Physical facilities and facilitating goods.Example: cleanliness

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C u s to m e r

P e r c e p t io n s

C u s to m e r

E x p e c ta t i o n s

S e r v ic e

D e li v e r y

S e r v ic e S ta n d a r d s

M a n a g e m e n tP e r c e p t io n s o f C u s to m e r E x p e c ta t i o n s

M a n a g in g th e E v i d e n c e

C o n fo r m a n c e S e r v i c e D e s ig n

U n d e r s t a n d in g th e C u s to m e r

C u s to m e r S a t i s fa c t io n G A P 5

C u s t o m e r / M a r k e t in g R e s e a r c h

G A P 1

C o n f o r m a n c e G A P 3

C o m m u n ic a t i o n G A P 4

D e s ig n G A P 2

Gaps in Service QualityGaps in Service Quality

The numbering of the gaps from 1 to 5 represents the sequence of steps that should be followed in new service process design

• Measuring the gap between expected service and perceived service is a routine customer feedback process that is practiced by leading service companies.

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Gaps in Service QualityGaps in Service Quality• Gap 1; The Market research gap is the discrepancy between customer

expectations and management perceptions of these expectations.

Ø (to close this gap needs to improve market research, better communication between management and employees who are in direct contact with customer)

• Gap 2; The service design gap results from management’s inability to formulate target levels of service quality to meet perception of customer expectations and translate these into workable specifications.

Ø (to close this gap needs to set clear goals and standardize service delivery tasks)

• Gap 3; The conformance gap occurs because actual delivery of the service dose not meet the specifications set by management.

Ø (to close this gap needs to emphasis on the teamwork concept, have skilled and capable employees, more training, clear job design and description)

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Gaps in Service QualityGaps in Service Quality

• Gap 4; The discrepancy between service delivery and external communication e.g. exaggerated promises and/or lack of information provided to contact personnel.

Ø (to close this gap needs improvement in way of communication to customer e.g. media advertising)

• GAP 5 ; The Gap between Customer expectations and perceptions indicates the level of customer satisfaction.

Ø (to enhance this gap, is dependent on minimizing the Gaps 1 through 4)

C u s to m e r

P e r c e p ti o n s

C u s t o m e r

E x p e c ta t i o n s

S e r v ic e

D e li v e r y

S e r v i c e S ta n d a rd s

M a n a g e m e n tP e r c e p t io n s o f C u s to m e r E x p e c t a t i o n s

M a n a g in g th e E v id e n c e

C o n fo rm a n c e S e rv ic e D e s ig n

U n d e rs t a n d in g t h e C u s to m e r

C u s t o m e r S a t i s fa c t io n G A P 5

C u s to m e r / M a rk e t in g R e s e a r c h

G A P 1

C o n fo r m a n c e G A P 3

C o m m u n ic a t io n G A P 4

D e sig n G A P 2

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Measuring Service Quality

• Measuring service quality is a challenge because customer satisfaction is determined by many intangible factors.

• Service quality contains psychological features e.g. ambiance of

restaurant

• Service quality often extends beyond the immediate encounter, it has impact on person’s future quality of life. e.g. health care

• To measure the Quality, there is a tool called “SERVQUAL”, which is multi-item scale tool that can measure the five dimensions of service quality, and customer is asked to record their level of agreement or disagreement (satisfaction; expectation Vs. perception)

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Measuring Service Quality• SERVQUAL is an effective multiple-item scale tool

(survey) to measure the 5 dimensions of service quality.

1. Reliability

2. Responsiveness

3. Assurance

4. Empathy االعتناق/التعاطف

5. Tangibles

ü It is a 2-part survey; initial section is to record customer expectations for a class of services, the second section is to record customer’s perceptions for a particular service.

ü A score for quality of service is calculated by computing the differences between the ratings that customer assign to paired expectation and perception statements.

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Quality Can neither be inspected into a product/service nor added on.

But,

Quality concern should begins Quality concern should begins with designwith design.

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Quality Service by Design• Incorporation of Quality in the Service Package

– Supporting Facility -- Facilitating Goods -- Information

– Explicit Services -- Implicit Services

• Taguchi Methods “Genichi Taguchi”

Concern more with the “Robust design” قوة المنتج that ensure product is functioning properly even under adverse conditions (Performance with abused) یعمل في اسوء االحوال و مع سوء االستخدام and quality is measured in statistical way (statistically)

• Poka-Yoke (Fail-safing) “Shigeo Shingo - Toyota ”

MOST OF CUSTOMER COMPLAINTS ARE DIRECT RESULTS OF HUMAN ERRORS

“Poka-Yoke" is a Japanese term that means "fail-safing" or "mistake-proofing". A poka-yoke is a mechanism in leaning process that helps to avoid mistakes, in order to eliminate product / service defects by preventing, correcting, or drawing attention to human errors as they occur. Poka-yoke doesn't involve any mathematics or high-tech devices. It uses sheer commonsense and things that can be found in our daily lives (e.g. checklists, Airlines use poka-yoka device to alert passengers to the size limits of carry-on luggage)

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Quality Service by Design Poka-Yoke (Failsafing)

Server ErrorsTask:

Doing work incorrectly

Doing work not required

Treatment:

Failure to acknowledge the customer

Failure to listen to customer

Tangible:

Failure to wear clean uniform

Customer ErrorsPreparation:

Failure to bring necessary materials

Encounter:

Failure to remember steps in process

Failure to follow system flow

Resolution:

Failure to signal service failure

Classification of Service FailuresService errors can originate from both the Server and the Customer

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Quality Function DeploymentQuality Function Deployment

House of Quality model– Establish the aim

– Determine customer expectations

– Describe service elements

– Note relationship strength between service elements

– Note association between customer expectation and service elements

Importance

Relative

1 2 3 4 5 Custom er Expectations

Reliability

Responsiveness

Assurance

Empathy

Tangibles

Comparison with Volvo Dealer

Weighted score

Improvement di fficulty rank

O O

O Weak

Medium

* Strong

9

9

9

Tra

inin

g

Att

itude

Cap

acit

y

Info

rmat

iion

Equ

ipm

ent

8

7

7

6 6

5 5

5

5

4

4

3 3

3

3

2

2 2

2

+

_

+

Custom er Perc ept ions

o

+

+

+

o

o

o

o

+

o o

o

o o

o Village Volvo

+ Volvo Dealer

Servic e Elements

Relationships

127 82 63 102 65

1

* *

– Weighting the service elements

– Service element improvement difficulty rank

– Assessment of competition

– Strategic assessment and goal setting

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House of Quality House of Quality

• A diagram, resembling a house, used for defining the relationship between customer desires and the firm/service capabilities.

• It utilizes a planning matrix to relate What customer wants to Howa firm is going to meet those wants.

• It looks like a House with a "correlation matrix" as its roof, customer wants versus service features as the main part, competitor evaluation as the porch etc.

• The basic structure is a table with "Whats" as the labels on the left and "Hows" across the top.

• The roof is a diagonal matrix of "Hows vs. Whats" and the bodyof the house is a matrix of "Whats vs. Hows".

• Both of these matrices are filled with indicators of whether the interaction of the specific item is a strong positive, a strong negative, or somewhere in between.

• Additional annexes on the right side and bottom hold the "Whys" (market research, etc.) and the "How Muches".

• Rankings based on the Whys and he correlations can be used to calculate priorities for the Hows.

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Walk-Through Audit• Walk-through, is a term describing the consideration of a

process at an abstract level.

• Walk-through, is often employed in services to describe the process of inspecting service steps and stages by following paths from the beginning to the end as determined by input conditions and choices made along the way.

• The purpose is to provide assurance of the fitness for purpose; and to assess the competence or output of service. (customer is a participant in the service process, his impressions of service quality are influenced by many observations)

A Walk-through Audit (WtA) is a customer-focused survey to uncover areas for improvement.

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Walk-Through Audit

• Designing of walk-through (Flowcharting)

– Flowcharts are any diagrams that allow to examine and understand the relationships between various elements of a service.

– Graphical representation of a process showing the relationships among process steps.

– Flowcharting can help the service provider team anticipate quality problems that might occur. An awareness of potential problems can result in the development of test procedures or approaches for dealing with them.

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Achieving Service Quality

•Cost of Quality

•Statistical Process Control

•Unconditional Service Guarantee

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Cost Of Quality - CoQ

• CoQ is the total cost of all efforts related to quality throughout the product or service life cycle to achieve quality

• This includes all work to ensure conformance to the requirements, as well as all work resulting from non-conformance to the requirements (product returns, warranty claims, and recall campaigns)

• There are three types of costs that are incurred:Ø Preventive costs Ø Appraisal costs Ø Failure costs (internal and external)

• Cost of a quality system is often viewed as a negative cost because errors in work have been traditionally accepted as a cost of doing business

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Quality Cost Types

• Prevention Cost: The cost of planning and executing a project so that it is error-free or within an acceptable error range

• Appraisal Cost: The cost of evaluating processes and their outputs to ensure that the project is error-free or within an acceptable error range

• Failure Cost - Internal : A cost incurred to correct an identified defect before the customer receives the product

• Failure Cost - External : A cost that relates to all errors not detected and not corrected before delivery to the customer

• Measurement & Test Equipment Costs: the capital cost of equipment used to perform prevention and appraisal activities

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Statistical Process Control

• Control Charts– Graphic display of results, over time, of a process, based on statistical

probability

– Used to determine whether or not a process is stable or has

predictable performance. (in control or out of control)

– Upper and lower specification limits are based on requirements of the contract, which reflect the maximum and minimum values allowed.

– Upper and lower control limits are set by the PM and appropriate stakeholders to reflect the points at which corrective action will be taken to prevent exceeding specification limits. (7 consecutive points rule)

– For repetitive processes, the control limits are generally ±3σ, where 1σ is one standard deviation.

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Sample Control Chart

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Sample Control ChartConsecutive Measurements with Fixed Limits

Seven or more consecutive points on the same side of the Mean indicates a need to investigate, regardless if they fall within the control limits

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Statistical Process Control• Benchmarking

– Involves comparing actual or planned practices to those of comparable services to identify;

• Best practices, • Generate ideas for improvement, and• Provide a basis for measuring performance

– These other Services can be within the performing organization or outside, and can be within same or in another application area.

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Statistical Process Control• Statistical Sampling

– Statistical sampling involves choosing part of a population of interest for

inspection (for example, selecting ten engineering drawings at random from a list of seventy-five)

– Sample frequency and sizes should be determined during the Plan Quality process so the cost of quality will include the number of tests, expected scrap, etc

Sample size = 0.25×(certainty factor/acceptable error)2

Ex.Ex.Suppose Service manager accepts 95% as level of customer satisfaction that a sample of service survey would contain no variation. He would calculate the sample size asSample size = 0.25×(1.96/0.05)2= 384

Desired Certainty Certainty Factor

95% 1.960

90% 1.645

80% 1.281

Commonly used certainty factors

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Customer Satisfaction

• All customers want to be satisfied.

• Customer loyalty is only due to the lack of a better alternative

• Giving customers some extra value will delight them by exceeding their expectations and insure their return

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Customer Feedback and Word-of-Mouth

• The average business only hears from 4% of their customers who are dissatisfied with their products or services. Of the 96% who do not bother to complain, 25% of them have serious problems.

• The 4% complainers are more likely to stay with the supplier than are the 96% non-complainers.

• About 60% of the complainers would stay as customers if their problem was resolved and 95% would stay if the problem was resolved quickly.

• A dissatisfied customer will tell between 10 and 20 other people about their problem.

• A customer who has had a problem resolved by a company will tell about 5 people about their situation.

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Service Recovery

Pre-recovery Immediate Recovery Follow-upPhase Phase Phase

Patronage

ProviderAware ofFailure

Fair Restitution

LoyaltySatisfactionRetention

Psychological-apology

-show interest

Follow-upService

Recovery

Tangible-small token

SeverityOf

Failure

PerceivedServiceQuality

ServiceRecovery

Expectations

CustomerLoyalty

ServiceGuarantee

Psychological-empathy-apology

Tangible-fair fix

-value add

ServiceRecovery

Speed of Recovery

FrontlineDiscretion

ServiceFailure Occurs

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Service Recovery• Case-by-case addresses each customer’s complaint

individually but could lead to perception of unfairness.

• Systematic response uses a protocol to handle complaints but needs prior identification of critical failure points and continuous updating.

• Early intervention attempts to fix problem before the customer is affected.

• Substitute service allows rival firm to provide service but could lead to loss of customer.

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UTILITY & WARRANTY

•Utility is Fit for Purpose Fit for Purpose “Functionality offered by a service to meet a particular need”

•Warranty is Fit for UseFit for Use“A promise or guarantee that availability, capacity, continuity, and security are all meeting customer expectations”

UTILITY is WhatWhat the customer gets and WARRANTY is HowHow it is delivered

Wa

rra

nty

Utility

High

High

Low impact on businessoutcomes but with high

Certainty(unbalanced value)

High impact on businessoutcomes but low

Certainty(unbalanced value)

UTILITY & WARRANTY are key to understand the customer’s perspective of value

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Quality Assurance

• Is the process of auditing the quality requirements and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used.

• An execution process that uses data created during Perform Quality Control.

• Involves periodically evaluating overall service performance to ensure that service will satisfy the relevant quality standards.

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Quality Assurance

• Quality AuditsA quality audit is a structured, independent review to determine whether Service activities comply with service’s goals, policies, processes, and procedures or not.

• The objectives of a quality audit are:

– Identify all the good/best practices being implemented,

– Identify all the gaps/shortcomings,

– Share the good practices introduced or implemented in similar projects in the organization and/or industry,

– Proactively offer assistance in a positive manner to improve implementation of processes to help the team raise productivity, and

– Highlight contributions of each audit in the lessons learned repository of the organization.

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Quality Assurance

• Quality Audits (cont’d)

–The subsequent effort to correct any deficiencies should result in a reduced cost of quality and an increase in sponsor or customer acceptance of the project’s product.

–Quality audits may be scheduled or random and may be conducted by internal or external auditors.

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Designing the Service EnterpriseDesigning the Service Enterprise

üService Quality

üProcess Improvement

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What is a ProcessA process is a structured set of activities designed to accomplish a specific objective

Processes;ü Create valueü Closed-loop systems based on

feedback for self-correcting andreinforcing action

ü Take one or more inputs and turnthem into defined outputs

ü Are organized around a set of objectives

ü Include all roles, responsibilities, tools,and management controls to deliver output

ü Should be controlled to ensure repeatable results

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Process Characteristics

Measurable→ Performance driven→ Cost, Quality, Duration, and so on … ,

Specific results→ Delivery of a specific result→ Individually identifiable and countableSpecific resultsSpecific results→ Delivery of a specific result→ Individually identifiable and countable→ Delivery of a specific result→ Individually identifiable and countable

Customers

→ Delivery of results to a customer→ Meeting customer Expectation→ Customer could be internal or external

Respond to a specific need

/ event→ Traceable to a specific triggerRespond to a specific need

/ event

Respond to a specific need

/ event→ Traceable to a specific trigger→ Traceable to a specific trigger

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Process Elements

OwnerOwner Policy Objectives

Documentation Feedback

Process ControlProcess Control

Activities

Procedures

Roles

Improvements

Metric

Work Instructions

Activities

Procedures

Roles

Improvements

Metric

Work Instructions

ProcessProcess

Resources Capabilities

Process EnablersProcess Enablers

OutputsInputs

Triggers

Ø There are two generic roles in Service Management;• Process Owner • Process Manager.

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Measurements and ManagementMeasurements and Management

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Quality and Productivity Improvement Process• Business processes should be analyzed and measured to

identify sources of variations that cause service to deviate from customer requirements.

• Business processes be placed in a continuous feedback loop so that managers can identify and change the parts of the process that need improvements.

• Deming created a diagram to illustrate this continuous

process, commonly known as the PDCAPDCA cycle for Plan, Do,

Check, Act– PLAN: Design or revise business process components to improve results

– DO: Implement the plan and measure its performance

– CHECK: Assess the measurements and report the results to decision makers

– ACT: Decide on changes needed to improve the process

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What are the 10 steps of for Problem-Solving ?

1. Recognizing the Problem & Establishing Priorities

2. Forming Quality Improvement Teams

3. Defining the Problem

4. Developing Performance Measures

5. Analyzing the Problem / Process

6. Determining Possible Causes

7. Selecting and Implementing the Solution

8. Evaluating the Solution: the Follow-Up

9. Ensuring Permanence

10. Continuous Improvement

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The DEMINGDEMING cycle

Time ScaleTime Scale

Maturity LevelMaturity Level(Quality)(Quality) Effective Quality

Improvement

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Quality Control

• Quality Control is the process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.

• Among other subjects, the team may find it useful to know the differences between the following pairs of terms:

– Prevention (keeping errors out of the process) and inspection (keeping errors out of the hands of the customer).

– Attribute sampling (the result either conforms or does not conform)

and variables sampling (the result is rated on a continuous scale that measures the degree of conformity).

– Tolerances (specified range of acceptable results) and control limits(thresholds, which can indicate whether the process is out of control).

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Quality Control

• Goals of Quality Control– Quality improvement.

– Rework actions to bring defective or nonconforming items into compliance with requirements or specifications.

– Completed checklists which become part of the project's records.

– Process adjustments, which involve immediate corrective or preventive action as a result of quality control measurements.

– A good quality control system will:

•Compare actual to standards

•Act when standards are not met

•Plan for improvements

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Quality Tools for Analysis & Problem Solving

• Cause and Effect DiagramsCause and effect diagrams, also called Ishikawa diagrams or fishbone diagrams, illustrate how various factors might be linked to potential problems or effects.

A possible root cause can be uncovered by continuing to ask “WHY” or “HOW” along one of the lines.

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• Control Charts– The appropriate data is collected and analyzed to indicate the

quality status of service processes.

– Control charts illustrate how a process behaves over time and when a process is subject to special cause variation, resulting in an out-of-control condition.

– They graphically answer the question: “Is this process variance within acceptable limits?”

– The pattern of data points on a control chart may reveal random fluctuating values, sudden process jumps, or a gradual trend in increased variation.

– By monitoring the output of a process over time, a control chart can help assess whether the application of process changes resulted in the desired improvements.

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• Flowcharting, is used during Perform Quality Control to determine a failing process steps and identify potential process improvement opportunities.

• Histogram, is a vertical bar chart showing how often a particular variable state occurred.

– Each column represents an attribute or characteristic of a problem/situation.

– The height of each column represents the relative frequency of the characteristic.

– Helps illustrates the most common cause of problems in a process by the number and relative heights of the bars.

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•Pareto Chart, also referred to as a Pareto diagram, is a specific type of histogram, ordered by frequency of occurrence.– It shows how many defects were generated by type or

category of identified cause.– Rank ordering is used to focus corrective action.– The project team should address the causes creating the

greatest number of defects first.– Pareto diagrams are conceptually related to Pareto’s Law,

which holds that a relatively small number of causes will typically produce a majority of the problems or defects.

– This is commonly referred to as the 80/20 principle, where 80% of the problems are due to 20% of the causes.

– Pareto diagrams can also be used to summarize various types of data for 80/20 analyses.

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Histogram & Pareto Chart

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• Run Chart– Similar to a control chart without displayed limits, a run chart shows

the history and pattern of variation– A run chart is a line graph that shows data points plotted in the order

in which they occur.– Run charts show trends in a process over time, variation over time, or

declines or improvements in a process over time.

– Trend analysis is performed using run charts and involves mathematical techniques to forecast future outcomes based on historical results.

– Trend analysis is often used to monitor:•Technical performance. How many errors or defects

have been identified, and how many remain uncorrected?

•Cost and schedule performance. How many activities per period were completed with significant variances?

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• Scatter Diagram, shows the relationship between two variables.

– Allows quality team to study and identify the possible relationship between changes observed in two variables.

– Dependent variables versus independent variables are plotted.

– The closer the points are to a diagonal line, the more closely they are related.

The Scatter Diagram is a tool for determining the potential correlation between two different sets of variables. (how one variable changes with the other variable)This diagram simply plots pairs of corresponding data from two variables, which are usually two variables in a process being studied.The scatter diagram does not determine the exact relationship between the two variables, but it does indicate whether they are correlated or not.It, by itself, also does not predict cause and effect relationships between these variables.

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• Statistical Sampling– Standard Deviation - the variance which measures deviations

about a mean of a set of values. It is the root-mean-square of the deviation and is designated by the Greek letter Sigma.

– Three sigma (3 standard deviations), a statistical term meaning 99.7% of the outcomes are within the control limits, has historically been used as the standard for setting control limits

– Six sigma (6 standard deviations), a statistical term indicating that the near 100% (99.99966%) of the outcomes are within the control limits, is becoming a standard with many companies

– Mean - the mean of a set of numbers is the sum of all the individual values divided by the number of values (commonly referred as the average)

– Median - the value of the middle item of any set of data containing an odd number of items or observations. For an even number of items or observations, the median is found by adding the two middle values and dividing by 2

– Mode - the value of the set of numbers which occurs most frequently

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The Standard Deviation (sigma) is used to find the distribution of values around the Mean (x)

Most of the distribution curves are symmetrical around the Mean (x) and are bell shaped

For symmetrical curves the area under the curve is a function of Standard Deviation

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Six Sigma DMAICDMAIC Process Steps

Step Definition

Define Define project objectives, internal and external customers

Measure Measure current level of performance

Analyze Determine causes of current problems

Improve Identify how the process can be improved to eliminate the problems

Control Develop mechanisms for controlling the improved process

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•Inspection, is the examination of a work product to determine whether it conforms to documented standards.

–The results of an inspection generally include measurements and may be conducted at any level.•For example, the results of a single activity can

be inspected, or the final product of the project can be inspected.

–Inspections may be called reviews, peer reviews, audits, or walkthroughs.

–Inspections are also used to validate defect repairs.

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“ISO/IEC 20000” as a Good Practices

Service Delivery ProcessesCapacity Management Service Level Management Information Security MgmntService Continuity and Service Reporting Budgeting and Accounting for Availability Management Service

Release Processes

Release Management

Relationship Processes

Business Relationship Management

Supplier Management

Resolution Processes

Incident Management

Problem Management

Control ProcessesConfiguration Management

Change Management

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Documents

Service Management - Learngroup · OPM3“Org. Project Management Maturity Model” and CMMI“Capability Maturity Model Integrated, are Process improvement models. • Management